Ares Attempts To Inject New Money Into BDC Structure

Ares Capital Management's business development corporation (BDC) Ares Capital Corp. is looking to raise $150 million through a secondary stock offering.

  • 12 Jan 2005
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Ares Capital Management's business development corporation (BDC) Ares Capital Corp. is looking to raise $150 million through a secondary stock offering. Last October, Ares followed in Apollo Management's footsteps when it succeeded in raising a BDC to invest in middle-market debt selling $165 million of shares to the public. Apollo raised $870 million in an IPO last March. A multitude of private-equity firms including The Blackstone Group registered offerings last year and then pulled them.

One of the keys to Ares' success was that it effectively lifted out RBC Capital Market's mezzanine team and bought a $150 million portfolio of senior secured loans, mezzanine debt and equity coinvestments from the Canadian bank. This included debt in Berkline/BenchCraft and Esselte. There were also preferred shares in two RBC CDOs, Foxe Basin CLO 2003 and Hudson Straits CLO 2004 (LMW, 10/42). Michael Arougheti, President of the BDC, declined comment.

Apollo has invested more than $400 million of its fund, with over 30% in senior secured bank debt. The latest investments include $95 million in the senior secured debt of Grand Vehicle Works Holding Corp., NES Rentals Holdings, Anthony International, Phillips Health, Ripplewood Phosphorus and United Industries Corp.

 

  • 12 Jan 2005

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Jul 2017
1 Bank of America Merrill Lynch 57,945.74 181 12.35%
2 Citi 57,243.86 174 12.20%
3 Wells Fargo Securities 48,214.86 152 10.28%
4 JPMorgan 33,301.70 114 7.10%
5 Credit Suisse 25,010.27 80 5.33%